Extension Strategies

Re-Packaging

Re-packaging provides a way for the company to give a mature product a new image, particularly if the product and previous image has limited its target audience. Fresh packaging can draw in a new part of the market by tapping into that market and visual preferences. For example, a laundry detergent company might decide to re-package a brand of detergent that the company has been selling for decades. A laundry detergent that was popular in the 1950s, is now going to be associated with a younger generation & grandparents. So, re-packaging the product for the younger generation let young people know that and can reach out to and reel in that new audience.

Discounting

Designing a new pricing strategy does not have to be a short-term option for a mature product. In some cases, re-pricing the product by discounting it can reach out to a target market that has typically seen the product as being just out of reach. For instance, the laundry detergent manufacturer might decide that it needs to make the product available to a certain price demographic. By lowering the price of the product even 50 cents to $1 per sale, the manufacturer can appeal to the new market and expand sales.

Re-Branding

Re-branding a mature product can be a somewhat extreme approach to extending its life cycle, but it can also be an effective method. Re-branding results in changing not only the packaging but also the name and total appearance of the product. Returning to the example of the laundry detergent, the company might decide that the image of the product as something from the 1950s is too established. Re-branding the product would mean giving the product a fresh new name and overall image, and thus reaching out to a different audience that will extend the life cycle of the product. Re-branding can even involve developing television spots that reflect on the previous name and image, and show how those are no longer relevant.

 

Expanding Abroad

In some cases, a product life cycle can only go so far in one place. Expanding the product abroad to reach out to a completely untapped market can extend the product life cycle on a different level. Expanding abroad can be costly, because the product has to be introduced completely in a new market, but if the move is effective the company can bring in profits that give the product new life